I'm a resident of NC and inherited a home in Ohio, which I sold for a loss about a year later. I did not use this home for personal use or rent it out, so my understanding is that I can consider this house as investment property and treat the loss as a long-term capital loss.
Of course, I will be filing a NC tax return, since that's the state in which I reside and have a job. But my question is whether I also have to file an Ohio return if the only activity I had there was to sell this home, and the sale resulted in a loss.
Also, do I need to make any adjustments to my NC return to somehow not realize this loss, since the sale was actually in Ohio?
An article that caused me some confusion was: http://hanleylaw.com/income-tax-law-inherited-property
Here, the example sounds a lot like mine, and he is saying "if, however, they inherited property from a state that taxes income, they would have to file a non-resident tax return.", which didn't make sense to me since they sold house at a loss.
